A mortgage loan is attractive because its terms provide for a low interest rate and a long repayment period.
Buying real estate is very difficult without outside help - few people have the entire amount of the transaction at once. Therefore, mortgage loans are becoming increasingly popular.
However, it is mortgage loans that occupy one of the leading positions in terms of the risk of overdue debt formation. And precisely because they are long-term - from 10 to 30 years. During this time, a lot can change, including the financial situation of co-borrowers. And often they become debtors.
Typical mistakes of borrowers - future debtors
The procedure for purchasing a home using a mortgage loan is based on strict adherence to the terms and requirements of the bank. Therefore, before you start applying for such a loan, you should think about how realistic the possibilities of regularly returning money to the bank are and what your plans are for the years the loan is valid. Of course, it is impossible to foresee an economic crisis, but it is quite possible to calculate your own strength. Therefore, the first mistake is the thoughtlessness and haste with which a loan is issued
.
Most borrowers do not think about the future and rush to quickly conclude a deal with the seller of the apartment they like before someone else buys it. At this stage, realtors accompanying the transaction play a very important role, creating excitement and urging clients on, without giving them the opportunity to think and calculate. And this is the second mistake - to make a concession to the mediator and completely rely on his actions
. Very often, the borrower relies on the professionalism of bank employees and realtors and signs all documents without reading. The main thing that is stored in the mind during the procedure for applying for a mortgage is the size of the loan and the amount of monthly payments.
And only when borrowers become the owners of the purchased property, they get the opportunity to consider in more detail the terms of the loan agreement, mortgage and annexes to the agreement. According to statistics, the first year the loan is repaid on time and without delays. For the second year already, the responsibility of co-borrowers has been reduced - the account from which the loan is deducted is replenished in violation of the terms and volume. Payments to the loan account are received irregularly, and there is an overdue debt
.
FAQ
What to do with mortgage debt is a question that interests debtors. There are current problems with late payments and illegally accrued interest.
Borrowers are interested in the procedure for foreclosure on an apartment mortgaged to the bank.
How long does it take to be evicted?
How long after a delay in payment does the bank have the right to file a lawsuit and evict the borrower?
Typically, the bank goes to court when the delay is more than 3 months or exceeds 5% of the value of the property.
How many times can you take out a mortgage? Read here.
What are the requirements for a mortgage guarantor? Detailed information in this article.
Debt write-off at the birth of a child
Is it possible to reduce the amount of mortgage debt after the birth of a second child?
Such a possibility is not provided. With the help of maternity capital, you can pay off part of the housing loan.
Mortgage debt can significantly affect the borrower's plans. If necessary, you can try to rent out the apartment and pay off the loan with the proceeds.
In the event of litigation, you should seek assistance from qualified lawyers.
1,500,000 for a mortgage calculate Sberbank mortgage question phone number
Reasons for debt formation
If we do not consider the common causes of delay (loss of job, decrease in earnings, etc.), which have little to do with the borrower himself, then the basis for the appearance of debt is most often the carelessness of the borrowers when concluding an agreement. That is, committing the above mistakes.
When applying for a mortgage, the bank calculates the total solvency of the co-borrowers, and when the client is told the size of the monthly payment to repay the mortgage loan, it does not seem overwhelming.
However, in addition to such a payment, the borrower also has other obligations:
- It is necessary to pay utilities for mortgage housing, which become more expensive every six months.
- Once a year it is necessary to renew the insurance contract for the mortgaged item.
Thus, monthly expenses for mortgage housing increase significantly, annual insurance makes a hole in the family budget - and now the first loan arrears are recorded.
Important!
If you make a delay once, the debt grows like a snowball - overdue interest, penalties and penalties stipulated by the loan agreement are charged on the amount of the monthly payment. And getting out of this debt hole can be very difficult.
Another cause of mortgage debt is divorce. When a family breaks up, there is no longer any joint income, therefore, the burden of repaying the loan usually falls on the spouse who has the financial ability to pay. It rarely happens that spouses agree on a voluntary share of the monthly payment amounts (although this is the ideal option during a divorce), so lengthy proceedings during the divorce process, as a rule, push credit obligations into the background. This gives rise to overdue debt and liability for failure to meet payment deadlines.
Ways to solve the problem
Several options are offered for solving the problem of debt to the bank, but none of them will be 100% effective if the borrower:
- found himself in a bad financial situation;
- does not have valuable property to pay off the debt.
Extension of deadline
The applicant has the right to contact the bank with an application to extend the loan term. This can be done if the mortgage was issued for a period not exceeding the maximum loan period in a particular financial institution.
Extending the term may be fraught with an increase in the interest rate on the loan and additional fees, but will save the debtor from losing the apartment pledged to the bank.
Assignment of rights
The Federal Law “On Mortgage” (Pledge of Property) and Articles 382 - 392.3 of the Civil Code of the Russian Federation allow the bank to assign loan claims to other persons - by way of assignment, subrogation (insurance companies).
Changing the lender does not mean reducing the debt. Mortgage debt may remain the same.
It is allowed to transfer collateral obligations to a third party.
The law does not prohibit selling an apartment with a mortgage, but the buyer:
- must be aware of such encumbrance;
- give written consent to transfer the mortgage obligations to yourself in full.
Banks themselves can find a buyer for the mortgaged property.
For clients who are new mortgage holders, it is beneficial to purchase an apartment that has already been mortgaged to the bank because the interest rate on such loans may be lower compared to a mortgage that requires an independent search for housing.
On-lending
Banks may make a concession to the debtor and allow him to take out another loan to pay off the mortgage debt.
Refinancing allows you to pay back debts to the bank through a new loan.
The negative aspects of this solution are that:
- Banks do not always agree to such a measure.
- The interest rate on such loans will be quite high, 13-16%.
- A citizen becomes a debtor on two loans at once.
Refinancing is possible if the debtor has the solvency:
- a new payment repayment schedule is being developed;
- a different term for full repayment of the mortgage loan is established.
Interested in the pros and cons of a military mortgage? See here.
Sale of collateral
The bank has the right to agree with the debtor out of court on the sale of the apartment at a price that suits both parties.
After the sale of the property, the lending institution must be paid the full value of the mortgage, including:
The remaining amount can be returned to the debtor. Practice shows that even after the sale of the collateral, the client may still owe the bank a significant amount.
The best way out of the situation is preliminary insurance of the property against possible risks in combination with additional life and health insurance of the borrower.
Declaring the borrower bankrupt
Federal Law No. 476 of December 29, 2014 allows citizens who have a debt of over 500 thousand rubles and are unable to pay off their debt obligations for more than 3 months to apply to a court of general jurisdiction to declare them bankrupt.
There are 3 possible ways out of a difficult financial situation:
- signing a settlement agreement with the bank (with the development of mutually acceptable conditions for repaying the mortgage);
- debt restructuring and installment payments for up to 3 years;
- making a decision on bankruptcy.
Declaration of bankruptcy does not relieve the debtor from fulfilling obligations under the mortgage.
The apartment pledged to the bank will be sold at auction. The state of bankruptcy remains for 5 years.
What to do if you have debt on your mortgage?
When co-borrowers learn about the amount of debt that needs to be repaid in order to return to the payment schedule under the agreement, the situation reaches a dead end. Because the penalty and penalties for the overdue amount are very high. And if it was difficult to find the amount of the monthly mortgage payment, then it becomes almost impossible to pay off the resulting overdue debt and make the scheduled payment.
Important!
Usually, in cases of unforeseen changes in the financial situation of the borrower, banks can restructure the loan.
Restructuring
- this is an amendment to the terms of the loan agreement regarding the amount of the monthly payment and the timing of its payment. Typically, an additional agreement is concluded to the loan agreement, under the terms of which the borrower pays only interest for several months. That is, the amount of the principal debt does not decrease. But the bank also does not apply financial liability to the debtor in the form of accrual of overdue interest, penalties and penalties provided for in the agreement. Therefore, if financial difficulties are temporary, then restructuring will allow you to maintain relations with the bank and not aggravate the debt.
But if there is no financial opportunity to take out a mortgage and no improvement in your financial situation is expected, then it is better to refuse the mortgage. And the sooner a decision is made, the less the debt will grow.
The main methods of collecting mortgage debt from a borrower
Now there are several directions for collecting debts from borrowers. Each of them was formed based on the judicial and banking practices of the world, as well as established legislation:
- A peaceful resolution of the issue, that is, pre-trial measures. The bank, together with the debtors, draws up a plan according to which the person being credited will independently pay off the debt without resorting to serious measures;
- if restructuring does not help, the bank again tries to help the debtor and eliminates late fees and sanctions so that the borrower pays off sooner;
- If the previous methods do not work or were assessed as useless even before their use, the bank launches strict measures to quickly get rid of the debt.
Financial institutions do not have a special approach in situations where it was not possible to speed up debt repayment through peaceful means. Extreme measures are developed individually for each debtor; the bank takes into account many factors when drawing up an action plan.
Foreclosure of mortgaged property occurs in several directions:
- the bank and the borrower agree that the latter independently sells the property under the supervision of the bank and repays the debt. This is beneficial for him, because he can sell an apartment or house for more than he bought it for.
- the bank allows the debtor to rent out the property, provided that the rental payments are enough to pay off the debt;
- the creditor is forced to take extreme measures and file a lawsuit or, if this is specified in the agreement, seize the collateral property and sell it. The latter option is troublesome for the bank, since it requires a lot of costs and the property is sometimes not in demand, which is why it is not possible to sell it at a normal price.
This is important to know: Recourse claim in civil proceedings: procedure for collecting damages
How to refuse a mortgage?
If a mortgaged apartment no longer brings only problems, then one of the options to get rid of this burden would be to find a buyer. That is, the mortgaged apartment must be sold.
Of course, it is difficult to sell an apartment mortgaged to the bank. But probably! The main thing is that the buyer is aware of the subject of purchase and sale.
The first option is when the buyer has his own funds to purchase a home
. In this case, the transaction can be carried out without the participation of the lender. That is, without asking him for permission to sell.
In this case, the apartment purchase and sale agreement will not be quite ordinary - it must reflect specific conditions, for example, that the apartment being purchased is pledged to the lender. The calculation between the parties is carried out as follows:
- funds in the amount of the balance of the loan debt under the loan agreement are transferred by the buyer to the seller before signing the agreement (even better if the buyer sends this money to the seller’s account from which the loan funds are written off - and this must be stated in detail in the agreement):
- funds in the amount of the balance of the cost of the apartment will be transferred to the seller on the day of submitting documents for state registration of the transfer of rights to the buyer.
What does this give?
In essence, the buyer provides money as an advance in the amount of the remaining balance of the loan. The loan is repaid, the bank and the borrower remove the encumbrance in the form of a mortgage from the apartment - and the property is free to transfer rights to the buyer. And already free from the claims of third parties, it becomes the property of the buyer. Moreover, in this case it is not at all necessary to submit documents to the registration authority several times. You can remove the encumbrance in one day and in one visit and immediately register a transaction with the buyer.
Important!
This option is the most optimal in terms of time, effort and nerves.
The second option is when the buyer raises credit funds
. Sometimes it happens. In banks this is called re-lending. That is, the borrower finds a buyer for the mortgaged apartment and informs the lender about it. The lender, who is least interested in the formation of overdue debt, willingly lends money to the buyer for the purchase of a mortgaged apartment, if, of course, the client meets the requirements for borrowers for mortgage products.
In this case, the lender himself takes part in the transaction and issues written consent to the transfer of ownership.
Despite the brief description of this procedure, it takes quite a lot of time, which will be required to obtain a loan for the buyer
I wanted to know what is included in “debt on credit payments other than mortgages”
3.1. Debt on loans and borrowings other than mortgages.
4.1. No, this is not an amnesty. Rather, the bailiff returned the writ of execution to the collector, since it was not possible to collect the amount of debt from you (there were no funds on the card). But this does not deprive the claimant of the opportunity to again apply with a writ of execution to the bailiffs and enforcement proceedings will be initiated again.
5.1. You can only reduce the penalty through legal action. Civil Code of the Russian Federation, part 1. Article 333. Reduction of penalties (as amended by Federal Law dated 03/08/2015 N 42-FZ)
Positions of the highest courts under Art. 333 Civil Code of the Russian Federation >>>
1. If the penalty payable is clearly disproportionate to the consequences of the violation of the obligation, the court has the right to reduce the penalty. If the obligation is violated by a person carrying out entrepreneurial activities, the court has the right to reduce the penalty, subject to the debtor's application for such a reduction.
2. A reduction of the penalty determined by the contract and payable by the person carrying out entrepreneurial activities is allowed in exceptional cases if it is proven that the collection of the penalty in the amount stipulated by the contract may lead to the creditor receiving an unjustified benefit.
3. The rules of this article do not affect the debtor’s right to reduce the amount of his liability on the basis of Article 404 of this Code and the creditor’s right to compensation for losses in cases provided for in Article 394 of this Code.
6.1. Submit an application to the bailiff to correct the error in the Resolution to initiate IP. Not significant, because the amount specified in the writ of execution is collected.
6.2. You can appeal if the decision has different wording. You can appeal both in the order of subordination and in court.
7.1. The bailiff has the right to impose a restriction on traveling abroad in the presence of the specified debt.
Expert opinion
8.1. Check this with your lender. This cannot be the final amount, since interest and penalties continue to accrue until the debt is fully repaid; See also:
Part 2 of the Civil Code of the Russian Federation, Part 3 of the Civil Code of the Russian Federation, Part 4 of the Civil Code of the Russian Federation “Civil Code of the Russian Federation (Part One)” dated November 30, 1994 N 51-FZ (as amended on August 3, 2018) (as amended and additionally , entered into force on September 1, 2018) “”Civil Code of the Russian Federation Article 408. Termination of an obligation by execution of Consultant Plus: note. Positions of the highest courts under Art. 408 Civil Code of the Russian Federation “>>>”
""1. Proper performance terminates the obligation.
""2. The creditor, accepting the performance, is obliged, at the request of the debtor, to issue him a receipt for receipt of the performance in full or in the relevant part.
If the debtor has issued a debt document to the creditor as evidence of the obligation, then the creditor, accepting performance, must return this document, and if it is impossible to return, indicate this in the receipt issued by him. The receipt may be replaced by an inscription on the returned debt document.
The presence of a debt document in the possession of the debtor certifies, until otherwise proven, the termination of the obligation. If the creditor refuses to issue a receipt, return the debt document, or note on the receipt the impossibility of its return, the debtor has the right to delay execution.
In these cases, the creditor is considered to be in default.
9.1. To cancel a court order that has entered into force, it is necessary to send to the court that issued the order a petition to restore the deadline for filing an objection regarding the execution of the court order and an objection regarding the execution of the order.
The petition can refer to a violation of the rules for the provision of postal services, as well as indicate the reasons why the judge had no reason to issue an order, there are many of them. Then the order will be 100% cancelled.
9.2. ask for an installment plan in court Art. 203 of the Code of Civil Procedure of the Russian Federation allows you to go to court on this matter. Since you had a court order - write to the office of the magistrate court (which issued the order) an application for cancellation - the order will be cancelled, ask the order itself to be withdrawn from execution
because this is often forgotten and money continues to be withheld.
